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1983 (6) TMI 202 - HC - Indian Laws

Issues:
Challenge to the validity of the order fixing prices of levy sugar under the Essential Commodities Act by the Central Government. Jurisdictional question regarding the maintainability of the writ application in the Calcutta High Court.

Analysis:
The petitioners, a Sugar Mill company, challenged the order by the Central Government fixing prices of levy sugar under the Essential Commodities Act. The petitioners argued that the order was arbitrary and violated the Act's provisions. They contended that part of the cause of action arose within the territorial limits of the Calcutta High Court's jurisdiction, as the Sugar Mill had its office in Calcutta and shareholders residing in West Bengal would be affected financially by the order. The petitioners sought relief under Article 226 of the Constitution of India, asserting the court's jurisdiction to issue appropriate writs.

The respondents, represented by Mr. Das, contested the maintainability of the application, arguing that the cause of action did not arise within the Calcutta High Court's jurisdiction. They highlighted that the impugned order was made by the Central Government in New Delhi, and the Sugar Mill was located in Bihar, outside the court's territorial limits. The respondents emphasized that the sale of levy sugar was to be made at the Mill's premises in Bihar, as directed by the Central Government, and thus, the application was not maintainable in Calcutta.

The court, in its analysis, referred to Article 226 of the Constitution of India, which grants High Courts the power to issue writs within their territorial jurisdiction. The court emphasized that for a cause of action to be within its jurisdiction, it must be shown that the facts forming the cause of action occurred within that territory. The court examined the petitioners' claims regarding the location of their office and shareholders in West Bengal but concluded that these factors did not constitute the cause of action within the court's jurisdiction. Citing precedents and legal principles, the court held that the application was not maintainable in Calcutta and dismissed it, without prejudice to the petitioners seeking relief in a more appropriate forum.

In conclusion, the Calcutta High Court dismissed the application challenging the order fixing prices of levy sugar by the Central Government, ruling that the cause of action did not arise within its jurisdiction. The court's decision was based on the lack of sufficient connection between the facts alleged in the petition and the court's territorial limits. The judgment highlighted the importance of establishing a clear nexus between the cause of action and the court's jurisdiction when seeking relief through writ applications.

 

 

 

 

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